Gold Fields and AngloGold Ashanti to create Africa’s largest gold mine
JOHANNESBURG – Gold Fields and AngloGold Ashanti have agreed the key terms of a proposed joint venture in Ghana between Gold Fields’ Tarkwa and AngloGold Ashanti’s neighbouring Iduapriem mines.
The Tarkwa Mine is held by Gold Fields Ghana, in which Gold Fields currently owns a 90% share and the Government of Ghana (GoG) holds 10%. The Iduapriem Mine is currently 100% owned by AngloGold Ashanti. Both mines are located near the town of Tarkwa in the country’s Western Region.
The Parties have agreed in principle on the key terms of the Proposed Joint Venture.
The Parties have commenced with preliminary, high-level and constructive engagements with senior government officials in Ghana and will continue engaging with the GoG, relevant regulators and other key stakeholders, with a view to implementing the Proposed Joint Venture as soon as practically possible. The Parties have agreed to mutual exclusivity during this engagement.
It is intended that the Proposed Joint Venture will be an incorporated joint venture, constituted within Gold Fields Ghana and operated by Gold Fields. AngloGold Ashanti will contribute its 100% interest in Iduapriem to Gold Fields Ghana in return for a shareholding in that company.
The Parties do not anticipate that any material, additional capital injection will be required by either company to establish the Proposed Joint Venture and is expected to materially improve its capital intensity once operational.
Excluding the interest to be held by the GoG, Gold Fields will have an interest of 66.7%, or two-thirds, and AngloGold Ashanti will have an interest of 33.3%, or one-third, in the Proposed Joint Venture.
The Proposed Joint Venture would create the largest gold mine in Africa and one of the largest in the world. It will be a high-quality operation, supported by a substantial mineral endowment and an initial life spanning almost two decades.
Operational synergies will be achieved by optimising mining of the combined ore bodies and consolidating the infrastructure of the immediately adjacent mines for the long-term benefit of all shareholders and stakeholders.
Tarkwa is 90%-owned by Gold Fields, with the Government of Ghana holding the remaining 10%. In 2022 it produced 531,600 oz at All-in cost and All-in sustaining costs of $1,248/oz. As at 31 December 2021, Tarkwa had proved and probable gold Mineral Reserves of 5.22Moz and measured, indicated and inferred gold Mineral Resources of 3.38Moz. (Updated 31 December 2022 Mineral Reserves and Mineral Resources will be released with the Gold Fields Integrated Annual Report by 31 March 2023) Iduapriem is wholly owned by AngloGold Ashanti Ltd.
In 2022 it produced 248,000 oz at a total cash cost of US$970/oz and an All-in sustaining cost of $1,299/oz. As at 31 December 2022, Idaupriem had proved and probable gold Mineral Reserves of 2.42 Moz and measured, indicated and inferred gold Mineral Resources of 3.92 Moz.
